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Rumours that BSkyB may make a bid to buy TalkTalk
Thursday 05 July 2012 12:55:25 by Andrew Ferguson

The retail prices for broadband amongst the six largest providers mean that volume and bundles are the key to profitability, and the rumours flying around the financial sector is that BSKyB may be considering a purchase of TalkTalk to make it the largest broadband retailer in the UK.

TalkTalk has around 4.07m customers, and Sky has 3.86m as of March 2012 and if Sky was to continue its current rate of growth is due to overtake TalkTalk as the second largest xDSL provider in the UK once the latest quarters results are announced, and get very close to exceeding the number of cable broadband customers Virgin Media has. A merger of Sky and TalkTalk would create a massive provider with over eight million customers, making them it the largest broadband provider in the UK, beating BT by over 2 million customers.

The UK broadband market has hundreds of providers selling services to consumers and business, the various mergers of the last five years have seen over 90% of the market concentrated in just a handful of providers, a merger between two of the largest ones could result in less retail competition. Though by merging into a single body, its ability to dictate terms to Openreach could drive the market forward, though while TalkTalk and Sky have fibre products, they are as yet not pushing the services heavily to consumers in the same way BT Retail is.

Comments

Posted by babis3g over 4 years ago
Don't know if will buy or just join forces...It just will not be surprise to me if they join forces
Posted by FlappySocks over 4 years ago
This is not very surprising. TalkTalk have a stake in YouView, and the writing is on the wall for satellite TV, YourView or not. Good move. Wonder what BT's reaction will be.
Posted by GMAN99 over 4 years ago
Wow what a deal this would be. Would this mean Sky would be classed as having SMP?
Posted by FlappySocks over 4 years ago
We need network neutrality laws. Sky TV On-Demand Sir?... have all the bandwidth you need. Google-TV Sir?... Netflix?... oh I think you might go over your quota for those services Sir.
Posted by andrew (Favicon staff member) over 4 years ago
Sky is net neutral currently.
Posted by omnius over 4 years ago
I hope they dont let talk talk take over there customer services dept......

Also would they be allowed to merge like this? soon they will be like that Weyland-Yutani from the aliens universe and run everything
Posted by babis3g over 4 years ago
@ omnius 3
....from the aliens universe and run everything

Good spot but is all ready happening
Posted by searcher100 over 4 years ago
Please don't let sky takeover talk talk Their newspaper arm already access mobile info what would having 8 million+ internet connections going through their hands allow them to do? I don't trust these sleazy people and when You view launches goodbye Sky tv I Hate paying a penny to this company.
Posted by adslmax over 4 years ago
Sky stand no chance to take over TalkTalk, if they do, ofcome might not allow it as Sky is pure greedy on TV and everything try to be best TV/Broadband/Telephone/Newspaper in UK. I left Sky TV because they ripped off prices and will up £2.50 extra a month from September.
Posted by stevenewton71 over 4 years ago
i would like to see someone challange BT and virgin on their fibre broadband! currently sky are the only company not to traffic manage! so surely more people would benefit than be subjected to virgin, talktalk and bt's lies when it comes down to "unlimited" broadband...
Posted by adslmax over 4 years ago
I wish Zen will take over Virgin Media one day
Posted by FTTH over 4 years ago
I would love to see this happen.

It would make sense for SKY, they have everything today but need to improve their Delivery method for OnDemand content.
Posted by tommy45 over 4 years ago
Forget their tv or telephone offerings, and their mass market retail products. if they merged into one company SKY , but kept the talk talk wholesale type service, and offered an unlimited FTTC80/20 gea product, SMPF they would be on a winner,
Posted by tommy45 over 4 years ago
Of Course the wholesale product ranges bare no or little resemblance to the retail products because you have a ISP independent to them would be even better still if someone took over control of the fftc connections from bt , so DLM and their profiling could be taken out of the equation and then the bill payer could have a say in things, such as fast path i would pay a bit more for that
Posted by adslmax over 4 years ago
I agree that DLM and BT profiling is nightmare, need to scrap out of it.
Posted by scotiaman over 4 years ago
Lest you all forget Sky and Talk Talk still need BT to deliver the last link to the premises !!
Posted by tommy45 over 4 years ago
Who forgets that BT have the monopoly because it's their line plant, FTTC still leaves the D 'side copper pair, that in some cases is not fit for ADSL let alone FTTC , but they don't give a toss about that, why shouldn't other ISP's not be able to offer FTTC/P services without the antiquated floored bt line management systems the whole lot should be disabled permanently as in most cases it only is of any benefit to bt & not the customer who PAYS THE BILL!!! Give the bill payer the option
Posted by tommy45 over 4 years ago
Because without the customers they wouldn't be in business long they have always forgotten that fact
Posted by baby_frogmella over 4 years ago
Oh please God no! Desperately hoping this doesn't happen as i won't be able to get a static ip & fastpath on sky as i'm currently getting on TalkTalk :)
Posted by ukhardy071 over 4 years ago
Hope not! I fear the talk talkers will make the sky service suffer slightly
Posted by oliver341 over 4 years ago
@tommy45
Sky use DLM too, and it's really not all that good
Posted by mike41 over 4 years ago
Another disaster in the making. Big is far from beautiful, too many decent ISPs have been eaten by the giants and their customers are the losers.
Posted by scotiaman over 4 years ago
@ tommy45 - Those two companies (Sky & Talk Talk)only want to take money from you ,they have neither the money nor the inclination to provide a national network IN the ground !
Posted by tommy45 over 4 years ago
@ scotiaman of course they do ,they won't spend money installing line plant & cabinets, as they are happy to use BT's But the pount that i was making is that should they merge then they may other more services such as FTTC via their wholesale arm, which the customers buy from a isp that re sells their wholesale products so the service can be quite different to the retail version , As for DLM ect @ oliver341 Was one of the reasons not to sky for me
Posted by tommy45 over 4 years ago
IMP all isp's should offer a static IP and a line config to the customers requirements But BT and some of the bargain (cheap) don't want to know about what their customer base really wants they aren't big on customer service
Posted by dogbark over 4 years ago
Sky have the easynet network they bought when easynet went bust
Posted by undecidedadrian over 4 years ago
and have already sold the easynet network for £125 million in a management buyout.

This is only a rumor, given that it would collapse the market to 3 large players I cannot see the regulators allowing it.

Who generated the rumor and were they trying to big up their TT shares?
Posted by dogbark over 4 years ago
Sky sold the remnants of easynet to Lloyds but kept the network.
Posted by camieabz over 4 years ago
Talk Sky Talk.

B Talk B

Scream Scream?
Posted by WelCentur over 4 years ago
Even if this happens can you really see them rolling out FTTC let alone FTTH? The costs of the digs would be ridiculous let alone the time it would take to implement. And who would end up paying for this in the end but the consumer!!

I'm sure they would have learnt something from NTL and Telewest 10 years previous i.e. the debt they ended up with.
Posted by WelCentur over 4 years ago
Possibility of shaing ducts but that's been there for some time, so I doubt the appetite is out there when BT's FTTC wholesale is an option.
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